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BusinessGalamsey, poor weather and smuggling contribute to $500m decline in Ghana's cocoa...

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Galamsey, poor weather and smuggling contribute to $500m decline in Ghana’s cocoa income

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Illegal mining activities, adverse weather conditions, the Cocoa Swollen Shoot Virus Disease (CSSVD), and widespread smuggling have collectively caused a substantial drop in Ghana’s cocoa revenue for the first quarter of 2024.

Head of Public Affairs at COCOBOD, Fiifi Boafo, outlined these critical factors during an interview on JoyNews Desk, explaining that they contributed to a staggering decline of over $500 million in cocoa revenue, as reported by the Bank of Ghana.

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“Illegal mining activities are cutting off farmers from their farms,” he stated, highlighting the detrimental impact of these illicit activities on cocoa production.

In addition to illegal mining, adverse weather conditions exacerbated the revenue decline.

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The Cocoa Swollen Shoot Virus Disease (CSSVD) has further compounded the situation, leading to the loss of over 500,000 hectares of cocoa farms.

“Over $200 million was spent to rehabilitate farms affected by Cocoa Swollen Shoot Virus Disease,” Boafo explained, underscoring the scale of the problem.

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To address these issues, COCOBOD has implemented several measures. Legal actions against smugglers and illegal miners are underway, with “five individuals already incarcerated and numerous cases pending in court,” Boafo revealed.

COCOBOD is also providing financial support to cocoa farmers.

“We are motivating cocoa farmers by paying them more for their produce,” Mr Boafo stated.

Furthermore, COCOBOD’s legal team is supporting farmers in prosecuting miners who encroach on their farms.

The environmental impact of illegal mining has also been profound, with polluted water bodies adversely affecting irrigation.

“Our legal team is assisting farmers in prosecuting miners who disrupt the use of their farms,” he said.

Despite the production setbacks, Boafo expressed confidence in COCOBOD’s ability to secure necessary funding.

“Our production challenges will not hinder our access to the cocoa syndicated loan,” he assured, highlighting the organization’s commitment to maintaining financial stability.

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